How does the incentive of profit contribute to consumer welfare? What role does it play in economic efficiency? Business profit is the price society pays for efficiency, quality, and low cost. Without the profit incentive, businesses would be less efficient, producing lower quality goods with less concern for cost, as in the Soviet Union. In this article, we’ll discuss the role of the profit incentive in consumer welfare, how business profits are measured, and how they incentivize efficiency.
The Role of Profit Incentives in Consumer Welfare










